Fresh off a record-breaking initial public offering on Wall Street, SpaceX is moving aggressively into the software development space. The aerospace company has officially agreed to acquire Anysphere, the parent company of the wildly popular AI coding assistant Cursor. The all-stock deal values the startup at $60 billion and gives SpaceX control over one of the most widely used developer tools in the industry.
The acquisition confirms a highly anticipated move in the tech sector. Back in April 2026, SpaceX secured an option giving it the right to either exercise a $60 billion buyout or settle for a $10 billion collaborative partnership. The company chose the full acquisition and will run the entire transaction through its subsidiary X67 Inc.
Cursor’s common and preferred stock will transition directly into SpaceX Class A common stock. The exact exchange ratio depends on the volume-weighted average closing price of SpaceX stock over the seven trading days before the deal officially closes, which is expected in the third quarter of 2026. The buyout successfully shuts out other tech competitors who wanted the software for themselves. Microsoft previously explored a purchase, and OpenAI made two separate approaches that Anysphere leadership rejected in favor of maintaining independence until this SpaceX agreement.
Cursor is a highly lucrative asset, generating roughly $2.6 billion in annualized B2B revenue. The startup was actually actively raising funds at a $50 billion valuation just before this deal materialized. Founded in 2022, the company essentially kicked off the “vibe coding” trend in early 2025. Up to this point, it built its Composer tool heavily on foundation models from rivals like Anthropic to function.
Moving the Engine to Memphis
The underlying technology powering Cursor is about to change completely. Because SpaceX merged with Elon Musk’s xAI earlier in February 2026, Cursor will pivot its operations entirely to the xAI Colossus data center complex in Memphis, Tennessee. The coding assistant will no longer rely on external foundation models from Anthropic or OpenAI to generate code.
Instead, future versions of the tool will be built directly on top of internal xAI infrastructure. This vertical integration allows SpaceX to tie one of the world’s most popular frontend developer interfaces directly to its own proprietary backend computing hardware.